Foreclosure Homes Milwaukee WI
The pre foreclosure period in Milwaukee, Wisconsin begins as soon as the lender files the documents with the court. The court gives the lender a letter for filing the complaint, and the same letter has to be sent to the borrower by mail or delivered in person. The same letter should be also sent to all the other parties that are involved. The court usually includes that the borrower must clear all dues owed to the mortgage company or it will order a foreclosure. If the borrower does not respond to the court notice, the foreclosure is declared by the court. The borrower gets another reinstated time period to clear all the dues after the court orders the foreclosure, and this does not mean that the foreclosure is cancelled. It means that the borrower still has a chance to pay in spite of the foreclosure process. The more the borrower delays, the more he has to incur in terms of expenses. The redemption period in Wisconsin is somewhere between 6 to 12 months and the same for abandoned properties is only two months.
The notice of sale that has details of the property being auctioned and the lender along with the amount owed is posted on the property and also delivered to the borrower by the county sheriff. In Wisconsin the auction sale can only occur after the re-instatement period given to the borrower is complete. It could be anywhere between 6 months and 12 months and this is considered to be the pre foreclosure period. So the whole foreclosure could take more than one year to complete.
The auction sale is conducted by the county sheriff, and 10 percent of the auction amount is paid to the sheriff. After the auction sale is completed, the amount is deposited within 10 days with the clerk of courts and the clerk distributes the respective amounts to the parties involved. Any excess amount over and above the mortgage amount is given to the borrower. The buyer or the winning bidder has these 10 days to pay the complete amount and the property is transferred only after the complete auction amount is received.
The exceptions in the auction are if the property was auctioned at a much lesser price than the money owed to the mortgage company by the borrower, and the sale is cancelled or considered void. This is called deficiency y judgment, and in this case it could take much longer than 1 year for the foreclosure to take place.
Even in an auction, the court prefers that the property should be sold for its fair value. The priority of the auction is not to make profits out of the sale, but to clear the borrower’s debts towards the mortgage company.
However, after all is said and done, the auctions sell properties at least 15% less of the actual price in the real estate market. The same house could be sold at a much higher price by the borrower in the real estate market. But once the lender files a law suit, the house or property cannot be sold in the real estate market.
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